The bottleneck holding back investors in industrial parks.

Social infrastructure issues, particularly housing for workers, continue to be seen as a major "gap".

On the morning of November 21st, the 2025 Investment Legal Support Forum (ILS Forum), themed "Investment in Industrial Park Infrastructure Development: Regulation Updates and Implementation Recommendations," organized by the Ho Chi Minh City Trade and Investment Promotion Center (ITPC) in collaboration with the Vietnam International Arbitration Center (VIAC), took place in Ho Chi Minh City.

Ms. Cao Thi Phi Van, Deputy Director of ITPC, stated that there are currently 433 industrial parks operating nationwide. Many localities have achieved occupancy rates of 80%-100%, especially in Dong Nai and the southern provinces. However, many infrastructure investors and manufacturing businesses still face difficulties in accessing land, obtaining investment approvals, land clearance, implementing green industrial park models or integrated urban-service industrial parks, as well as in applying preferential policies or developing worker housing.

Professor Le Hong Hanh, Chairman of VIAC, stated that despite the huge demand for investment in industrial parks, investors still face many obstacles, especially legal issues in transactions between entities. These bottlenecks easily lead to disputes, causing losses and reducing the attractiveness of the industrial real estate segment.

Mr. Seck Yee Chung, Vice President of the Singapore Chamber of Commerce in Vietnam (SingCham Vietnam), said that Singaporean investors are currently facing a dilemma between two options: self-investing in infrastructure development or leasing completed land. "The self-investment model, similar to the Vietnam-Singapore Industrial Park (VSIP), offers long-term benefits but involves complex procedures and a lack of interconnectedness. Leasing infrastructure allows for faster implementation but is entirely dependent on the industrial park developer and the lease term," Mr. Seck Yee Chung explained.

Concurring, Sam Conroy, President of the Australian Chamber of Commerce in Vietnam, emphasized that the shortage of suitable land for specialized manufacturing and the lengthy licensing process are reducing Vietnam's attractiveness to Australian investors.

Meanwhile, lawyer Bui Van Thanh, Vice President of the Vietnam Industrial Park Finance Association, and lawyer Ngo Thi Van Quynh (AN Legal) warned of the increasing number of disputes over land clearance and land lease contracts. Some industrial parks are slow in land clearance, leaving investors without land to develop; or the industrial park developers are slow to complete infrastructure, making it difficult for management boards to attract secondary investors. Even in cases where land lease fees are paid in full, investors still risk having their land revoked if they fall behind schedule, or face legal obstacles due to environmental planning not being consistent with the overall planning.

Social infrastructure issues, particularly worker housing, continue to be seen as a major "gap." According to Mr. Jeong Ji Hoon, Vice President of the Korean Chamber of Commerce in Vietnam, out of 4.1 million workers in over 430 industrial parks nationwide, 70%-80% have to rent makeshift accommodation in inadequate conditions. Despite the huge demand, social housing projects – worker accommodation – fail to attract investors due to low profitability, slow return on investment, and a lack of sufficiently strong incentive mechanisms.

Source: https://nld.com.vn/nut-that-kim-chan-nha-dau-tu-khu-cong-nghiep-196251121215857439.htm